Federal bill couples ending taxes on tips with banning sub-minimum wage

Democrats in Nevada push bill that would provide further relief for tipped workers who can be paid as little as $2.13

Donald Trump began the second term of his presidency last month with a victory lap at a rally in Las Vegas, Nevada, a key swing state he flipped in 2024, by reaffirming his campaign promise to pass a proposal to abolish taxes on tips.

Nearly 6 million workers around the US rely on tips for most of their income. Under federal law, tipped workers can be paid as little as $2.13 an hour, a minimum that has not changed since 1991. Only seven states, Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington, have banned the sub-minimum wage for tipped workers.